How to Delete Reconciliation in QuickBooks Online

Keeping QuickBooks Online (QBO) records accurate requires you to reconcile your data. It verifies that what appears in your accounting software also appears on your bank and credit card records. Nevertheless, it is possible that you must remove an entry for reconciliation as a result of errors, alterations, or inaccuracies. This article explains how to cancel a reconciliation in QuickBooks Online, as well as why and what alternatives to use.

Why You Might Need to Undo or Delete Reconciliation in QuickBooks Online?

Various situations may encourage you to reverse a reconciliation:

• Errors in Data Entry: Inaccurate reconciliation can occur due to mistakes while entering transaction data.
• Missing Transactions: Reconciliation cannot be completed if transactions are not imported or entered into QuickBooks Online beforehand.
• A Balance That Does Not Match: An incorrect beginning balance can cause reconciliation discrepancies.
• Duplicate Transactions: Entering the same transaction twice will create issues.
• Bank Errors: If a bank statement contains errors, you may need to reverse the reconciliation after corrections.
• Sorting Transactions to the Wrong Account: Selecting the wrong account during reconciliation can cause problems.

Undo Bank Reconciliation in QuickBooks Online Accountant (QBOA)

If you’re using QuickBooks Online Accountant (QBOA) to manage your financial records—or working with a professional accountant who does you can follow the steps below to undo or reverse a bank reconciliation in QuickBooks Online Accountant.

Step 1: Prepare Before Undoing a Bank Reconciliation in QBOA

Before you proceed, make sure to complete the following preparatory steps:

• Download all reconciliation attachments linked to the account: Once a reconciliation is undone, all attached files will be permanently deleted.
• Understand the effect on future reconciliations: Undoing one month’s reconciliation automatically reverses all subsequent months. For instance, if you undo February’s reconciliation in May, both March and April reconciliations will also be undone. To prevent errors, always start from the most recent reconciliation and move backward.
• Identify manually entered transactions: You cannot undo reconciliations for transactions entered manually. Use the transaction audit history to locate and review these records before proceeding.

Once you’ve completed these checks, you can move on to the next step to undo the reconciliation in QuickBooks Online Accountant.

Step 2: Steps to Undo Bank Reconciliation in QuickBooks Online Accountant

Here’s how to undo a bank reconciliation in QBOA:

• Sign in to QuickBooks Online Accountant on your system.
• Open the client’s company file, then navigate to the Transactions tab.
• Select Reconcile from the options available.
• Click History by Account and choose the appropriate account and date range from the drop-down lists.
• Locate the specific reconciliation you want to undo, then select View Report to review the reconciliation details.
• Check for any discrepancies or adjustments that need to be made.
• When ready, click the dropdown in the Action column and select Undo.
• Confirm your choice by clicking Yes, and then select Undo again to finalize.

You have now successfully undone the bank reconciliation in QuickBooks Online Accountant. Next, let’s see how to perform the same task in the regular QuickBooks Online version.

Undo Bank Reconciliation in Standard QuickBooks Online Versions

If you’re using the standard version of QuickBooks Online (QBO) instead of QBOA, you can still undo reconciliations manually by following the steps below:

• Go to the Accounting menu and open the Chart of Accounts.
• Locate the account you want to work with, then click View register.
• To make it easier to find recent entries, apply a filter to show transactions from the last 60 days.
• In the Reconciliation column, look for transactions marked with an ‘R’, which indicates they’re reconciled.
• Click the box repeatedly until it turns blank to remove the reconciliation mark. A ‘C’ will appear for cleared transactions.
• Click Save, then close the register.

After completing these steps, your reconciliation will be undone, and the selected transactions will be marked as unreconciled.

You may also read this: Mini Reconciliation in QuickBooks

Things to Keep in Mind Before Deleting

Consider the following prior to reversing a reconciliation process:

• Impact on Reporting: Undoing a reconciliation will affect your financial reports, including the Balance Sheet and Bank Reconciliation Report, for that period.
• Audit Trail: QuickBooks Online provides an audit log to track the process of undoing a reconciliation or unreconciling transactions.
• Timing: If multiple errors exist across different periods, it’s best to reverse the most recent reconciliation first.
• Find the Main Reason Behind the Issue: Investigate why the reconciliation broke to prevent repeating the same mistakes when re-establishing it.
• Backup (Not Directly in QuickBooks Online): QuickBooks Online automatically backs up your data, but be aware of the impact of major changes and consult an accountant if unsure.

Conclusion

Even though QuickBooks Online doesn’t provide a remove reconciliation button, you can still effectively un-reconcile any transaction. Online Accountant users can undo actions more simply, whereas other users must take action on reconciled transactions manually. First, look at how what happened affects your financial records, then handle the reasons for the problem before reconciling again.

Frequently Asked Questions